.Sergio Ermotti, president of UBS GroupStefan Wermuth|Bloomberg|Getty ImagesZURICH, Switzerland u00ea u00b7 UBS CEO Sergio Ermotti mentioned Wednesday that market dryness might magnify in the 2nd half of the year, however he carries out not strongly believe the U.S. is moving in to a recession.Global equities observed stinging auctions recently as clients digested unstable economic data away from the USA which brought up concerns about an economic slump on earth's largest economic condition. It also raised questions regarding whether the Federal Reserve needed to have to be a lot less hawkish with its monetary plan posture. The reserve bank always kept fees on hold in late July at a 23-year high.When asked about the expectation for the united state economic situation, Ermotti said: "Certainly not always a recession, however most definitely a slowdown is actually achievable."" The macroeconomic red flags are not clear adequate to refer to downturns, and actually, it is actually probably premature. What we know is that the Fed possesses enough ability to intervene and help that, although it is actually mosting likely to take some time, whatever they carry out to be at that point broadcast into the economic condition," the chief executive officer told CNBC on Wednesday after the financial institution mentioned its second-quarter results.UBS expects that the Federal Reserve will cut fees through at the very least fifty manner aspects this year. Currently, investors are divided in between a fifty and a 25 basis point cut at the Fed's next conference in September, according to LSEG data.Speaking to CNBC, Ermotti stated that our company are actually probably to find greater market volatility in the second half of the year, partly due to the united state vote-casting in November." That is actually one element, however also, if I consider the overall geopolitical photo, if I look at the macroeconomic picture, what we viewed in the last number of full weeks in terms of dryness, which, in my point of view, is a very clear indication of the frailty of some factors of the system, u00e2 $ u00a6 one need to anticipate definitely a higher degree of dryness," he said.Another unpredictability going forward is monetary policy as well as whether central banks will definitely need to cut rates a lot more boldy to deal with a slowdown in the economic condition. In Switzerland, where UBS is headquartered, the central bank has actually reduced prices twice this year. The International Reserve Bank and the Financial Institution of England possess each introduced one cut up until now." Recognizing the celebrations which are theu00c2 unknowns imminent like the united state governmental political election, our experts became obsequious along with an extremely reduced volatility, right now our team are changing to an extra ordinary routine," Bruno Verstraete, owner of Lakefield Wealth Control told CNBC Wednesday." In the context of UBS, [even more dryness is] certainly not always a poor trait, since more volatility implies additional trading profit," he incorporated.